The Meridian is the official blog of Scott Dauenhauer and Meridian Wealth Management. This blog will update you on financial planning and investment management topics. It will also explore the impact of world events on your portfolio.

Monday, December 06, 2010

Big Ben Explains Things

A few things that concern me:

Bernanke says that QE is not inflationary, but that he is worried about deflation and won't let it happen....if QE is not inflationary then how can it fight deflation?

I don't believe QE is inflationary, its an asset swap (as Bernanke states). This doesn't mean that others won't believe it is inflationary and push up asset prices as a speculation.

I think the worst quote is when the interviewer asks whether he is able to control things and he said he was "100% confident". Famous last words.

He says the goal is to lower rates, yet doesn't talk about liquidity traps or that QE has not worked in Japan.